Bitcoin News Today: HBAR Plunges 20% as Crypto Markets Pressured, $0.29 Cluster Signals Possible Rebound

Hedera Hashgraph’s native token HBAR has experienced a nearly 20% decline over the past seven days, trading near $0.22 as broader cryptocurrency markets remain pressured by Bitcoin’s recent weakness. The token now hovers close to its 20-day exponential moving average (EMA), a key technical support level, with analysts warning that a breakdown below this threshold could trigger further sell-offs. However, on-chain data reveals a significant liquidity cluster around $0.29, potentially acting as a catalyst for a rebound if broader market conditions stabilize [1].

Technical indicators highlight the fragility of HBAR’s current position. The 20-day EMA at $0.22 has served as dynamic support during the recent sell-off, but sustained weakness below this level could expose the token to additional downward pressure. Analysts have identified $0.18 as the next critical support target in a bearish scenario, representing an 18% potential drop from current levels. The broader cryptocurrency market’s underperformance, driven by Bitcoin’s pullback, has exacerbated HBAR’s decline, with many altcoins posting double-digit losses in the same period [1].

Despite the bearish technical setup, on-chain metrics suggest potential for a reversal. Coinglass data shows a concentrated cluster of leveraged positions around $0.29, where a significant number of stop-loss orders and margin calls are located. When such clusters form above an asset’s current price, they often create upward pressure as traders scramble to trigger these positions. This dynamic has historically influenced short-term price movements in cryptocurrency markets, with large liquidation zones acting as "price magnets" during recovery phases [1].

HBAR’s funding rate in perpetual futures markets remains a positive indicator. The current rate of 0.0092% reflects that long position holders are paying short sellers to maintain their exposure, a sign of continued bullish sentiment among derivatives traders. Positive funding rates typically precede spot price recoveries, as they signal underlying demand for long positions. This metric contrasts with the token’s bearish price action, creating a divergence that suggests market participants have not fully abandoned optimism. Traders are effectively paying a premium to hold long exposure, implying confidence that the current weakness is temporary [1].

The token’s near-term trajectory will hinge on its ability to defend the $0.22 support level. If this threshold holds amid ongoing selling pressure, it could serve as a foundation for a rebound toward $0.26. However, a decisive breakdown would likely accelerate downward momentum, with analysts flagging $0.18 as the next major target. The broader cryptocurrency market’s stability, particularly Bitcoin’s performance, will play a critical role in determining whether HBAR can stabilize or face further declines [1].

HBAR’s situation underscores the interplay between technical vulnerabilities and on-chain resilience in cryptocurrency markets. While immediate risks remain elevated, the presence of a liquidity cluster near $0.29 and a positive funding rate offers a potential counterbalance to downward pressure. Investors are closely watching whether the token can withstand the $0.22 test, which could either validate bearish expectations or mark the beginning of a recovery phase.

Source: [1] [HBAR Token Shows 20% Drop But $0.29 Liquidation Cluster May Drive Recovery] [https://coinmarketcap.com/community/articles/6883753e32b65702e7fcff8f/]